ECONOMY | WHAT REALLY HAPPENED


ECONOMY

Aug 17 09:13

Emerging Market Contagion

Aug 17 08:47

Recapping $TSLA's past 24 hours:

Aug 17 08:17

CEO compensation surges dramatically while average workers get no significant pay raise – report

A recent report by the Economic Policy Institute shows that top managers are getting higher compensation every year, while their employees’ salaries barely change.

“In 2017 the average CEO of the 350 largest firms in the US received $18.9 million in compensation, a 17.6 percent increase over 2016. The typical worker’s compensation remained flat, rising a mere 0.3 percent,” the report said.

“The 2017 CEO-to-worker compensation ratio of 312-to-1 was far greater than the 20-to-1 ratio in 1965 and more than five times greater than the 58-to-1 ratio in 1989.”

Aug 17 07:59

RECOVERY SUMMER, THE UN-IRONIC EDITION

Aug 17 07:28

Retail sales, Housing starts, Philly Fed

Aug 17 06:50

As Costs Rise, Pentagon Postpones Parade

(*as costs rise , or as the humiliations keep rolling in from abroad , that we're not supposed to be talking about ?)

Aug 17 04:29

Rise of US Dollar Haunts Emerging Market Debt

Aug 17 03:36

The Central Bankers Are Up To Something

Aug 16 18:06

US-based payday loan giants Curo, QuickQuid and Lending Stream who 'target British customers with up to 2,000% APR loans' could face legal action in 'bigger scandal than PPI'

Giant American payday lenders could face legal action in the UK today after they were accused of mis-selling loans to up to a million Britons.

Paydayrefunds.co.uk are preparing legal action against Quickquid, Curo and Lending Stream after the US-payday lending giants have so far refused to disclose information on customers who could be due tens of millions of pounds back in compensation.

The company issued a letter of action six months ago, which is due to run out next Friday. Paydayrefunds.co.uk revealed they have already appointed a barrister in preparation for issuing an injunction at the High Court against the lenders.

Aug 16 17:48

RBS bankers joked about crashing the US housing market and likened mortgage trading at the lender to 'organised crime'

Royal Bank of Scotland faces fresh embarrassment after it emerged its bankers joked about destroying America's housing market before the financial crisis.

A top executive in the bank's US division revealed it had sold a bundle of 'total f***ing garbage' sub-prime mortgages to investors but disguised the loans to 'look ok'.

Bankers also likened mortgage trading at RBS to 'organised crime' and discussed 'fraud that was so rampant'.

The comments came to light in documents released as part of a £3.9billion settlement with the US Department of Justice after the bank was accused of misleading investors over sales of mortgage-backed investments between 2005 and 2008.

Aug 16 15:20

Turkey Stocks, Lira Slide After Mnuchin Threatens More Sanctions

The Lira and Turkish stocks are sliding notably after Treasury Secretary Steven Mnuchin warned that Washington is preparing more sanctions for Turkey due to the lack of progress on the release of Pastor Brunson.

Following a Turkish court's refusal yesterday to release American pastor Andrew Brunson, Mnuchin warned at a White House cabinet meeting today that U.S. has more sanctions prepared for Turkey if Brunson isn't quickly released.

Additionally, as Bloomberg reports, President Donald Trump said during a Cabinet meeting at the White House on Thursday that Turkey hasn’t turned out to be a great friend to the U.S., and he complained that his administration secured the release of a Turkish citizen from an unnamed country on Turkish President Recep Tayyip Erdogan’s behalf.

“We got somebody out for him,” Trump said, from “some place,” but Turkey continues to hold pastor Andrew Brunson. It’s “not right” and a “terrible thing,” he said.

Webmaster's Commentary: 

I might suggest that Turkey's Edrogan back down here; if economic destabilization does not work, look for DC to try something more drastic.

Aug 16 15:03

Amazon eyes cinema company

Amazon is in the running to acquire Landmark Theaters, a move that would vault the e-commerce giant into the brick-and-mortar cinema industry, according to people familiar with the situation.

The company is vying with other suitors to acquire the business from Wagner/Cuban Cos., which is backed by billionaire Mark Cuban and Todd Wagner, according to the people, who asked not to be identified because the discussions are private. The chain's owners have been working with investment banker Stephens Inc. on a possible sale, the people said. No final decisions have been made, and talks could still fall apart.

Aug 16 14:45

Turkey Ready for War, Says Erdogan, US Involved in Financial Warfare against Turkey

According to the Islamist Turkish newspaper Yeni Akit quoted by Ahvalnews, President Recep Tayyip Erdo?an is ready for war.

“The secret to successful states is their readiness for war. We are ready with everything we have,” said Erdo?an on Monday in a meeting with ambassadors in Ankara.

According to reports, the US has instrumented a currency war targeted against the Turkish lira.

“Erdo?an’s comments come as the Turkish currency continues to slide against the U.S. dollar following Washington’s announcement of sanctions against Ankara this month”. Ahvalnews

The decline is indicated in the chart below (Bloomberg), from 4.85 Lira to the dollar on July 16 to approximately 5.94 Lira to the dollar on August 16.

Webmaster's Commentary: 

President Erdogan, a word, please: if one follows the injunction of Hammurabi's code, which advocated "an eye for an eye and a tooth for a tooth", one winds up with a population which is blind and toothless.

So please, let's take a step back from the brink; you cannot get your NATO brothers to stand with you against the US; you do not have the resources
or wherewithal to fight the US militarily; so the only issue with which to "fight", if one can use that word, is economic.

And on that ground, you are losing, mightily.

I would respectfully suggest that Turkish and American ambassadors start speaking with each other, to ratchet down this war of words.

In the end, this posture on your part will only serve to cause the US government to attempt more destabilization against your country, possibly by inciting your Kurdish population to revolt; and if that were to happen, what would happen to your power base?!?

Aug 16 13:21

Economic Contagion? Central Banks Are The Real Culprit

It would appear that the only “contagion” is that of central banks; most of all the Federal Reserve. Yet, all we hear about in the mainstream is talk on the trade war and linchpins like Turkey. The public is being regaled with lies, conditioned to accept false explanations about the true cause of a crisis that is about to occur; a crisis which central bankers are deliberately engineering so that they can later promote the philosophy of "simplification" and one-world centralization as a cure-all.

Aug 16 12:40

Bearish Due Dilligence.

Aug 16 12:32

FRACKING WASTEWATER SPIKES 1,440% IN HALF DECADE

Between 2011 and 2016, fracked oil and gas wells in the U.S. pumped out record-breaking amounts of wastewater, which is laced with toxic and radioactive materials, a new Duke University study concludes. The amount of wastewater from fracking rose 1,440 percent during that period.

Over the same time, the total amount of water used for fracking rose roughly half as much, 770 percent, according to the paper published Wednesday in the journal Science Advances.

"Previous studies suggested hydraulic fracturing does not use significantly more water than other energy sources, but those findings were based only on aggregated data from the early years of fracking," Avner Vengosh, professor of geochemistry and water quality at Duke's Nicholas School of the Environment, said in a statement. "After more than a decade of fracking operation, we now have more years of data to draw upon from multiple verifiable sources."

The researchers predict that spike in water use will continue to climb.

Webmaster's Commentary: 

This has got to be lousy for the general environment, and for people who live anywhere near these fracking sites.

Aug 16 12:23

PEPE ESCOBAR: ECONOMIC WAR ON IRAN IS WAR ON EURASIAN INTEGRATION

Hysteria reigned supreme after the first round of US sanctions were reinstated against Iran over the past week. War scenarios abound, and yet the key aspect of the economic war unleashed by the Trump administration has been overlooked: Iran is a major piece in a much larger chessboard.

The US sanctions offensive, launched after Washington’s unilateral pullout from the Iran nuclear deal, should be interpreted as an advance gambit in the New Great Game at whose center lies China’s New Silk Road – arguably the most important infrastructure project of the 21st century — and overall Eurasia integration.

The Trump administration’s maneuvers are a testament to how China’s New Silk Road, or Belt and Road Initiative (BRI), threaten the US establishment.

Aug 16 12:15

The Risk Free Rate Is A Guaranteed Loss

Aug 16 11:45

China’s New Trade Strategy: Threatening U.S. Companies

Starting August 23, an additional $16 billion dollars of exports from China to the U.S. will be subject to a 25% tariff, as the trade war between the two nations continues unabated. In preparation for these tariffs, China signaled that it would impose an equivalent amount of tariffs on U.S. imports. With both sides far apart, China has searched for alternative strategies to force a resolution of the deteriorating trade situation.

Aug 16 11:43

Yuan, Futures Jump On Report China Delegation Coming To US To Discuss Trade

The Yuan is surging, alongside S&P futures, while the Japanese Yen has erased its gains and US Treasury futures are slumping on a Bloomberg report that China's Vice Commerce Minister, Wang Shouwen, will lead a delegation to the U.S. in late August, the Ministry of Commerce says on website, adding that the visit comes at the invitation of the US.

Additionally, China reiterates that it opposes unilateralism and trade protectionism, and won’t accept any unilateral trade restriction measures. It also "welcomes communications and dialogue on the basis of equality and integrity."

The news is quickly being interpreted by the market as a possible thaw in the trade war tit-for-tat, and has sent H-shares sharply higher, while S&P futures jumped 10 points:

Aug 16 11:37

The Looming Economic Collapse: The $250 Trillion Dollar Worldwide Debt Crisis

As governments raise taxes to cope with their unending spending habits, people are increasingly being forced to supplement their own income with loans. And according to most financial experts, this debt problem is so big that it will usher in a global economic collapse of epic proportions.

According to the Institute of International Finance’s latest Global Debt Monitor, the amount of debt held in the world rose by the biggest amount in two years during the first quarter of 2018. It grew by $8 trillion to hit a new all-time high of $247 trillion, up from $238 trillion as of December 31, 2017. And that’s up by $30 trillion from the end of 2016.

Aug 16 11:37

Economic Contagion? Central Banks Are The Real Culprit

These excuses for unstable systems and disasters stem from a propaganda ploy developed by DARPA called “Linchpin Theory.” It is the widely promoted idea that human systems collapse “naturally” when they become “too complex,” and all it takes to start this collapse in motion is a single well placed “linchpin” pulled at the right moment. In other words, DARPA wants you to believe that there is no such thing as organized conspiracy and that all disasters are caused by chance.

Aug 16 11:06

US Sanctions Foster Emergence of Multipolar World

Russia, Iran, China, and now Turkey are in the same boat, as all have become the target of US sanctions. But none of those nations has bowed under the pressure.

Aug 16 10:45

CHINA SLOWDOWN = GLOBAL SLOWDOWN

Aug 16 10:32

Pension Crisis on the Horizon

Aug 16 10:14

A $2,000 iPhone: It's coming. It's inevitable

With Samsung pushing the envelope on the price of flagship smartphones with its $1,250 512GB Galaxy Note 9, it's only a matter of time before we have a $2,000 iPhone.

Webmaster's Commentary: 

The $1000 iPhone isn't selling so well and latest word is that the next iPhone will sell for just $500.

Aug 16 09:48

Apple says buildings at its new billion-dollar headquarters worth just $200

US tech giant Apple became the first company to reach an historic $1 trillion in market capitalization recently, but it still doesn’t like paying more taxes, according to recent reports.

Apple has been at odds with California’s Santa Clara County over the value of its property. As the local newspaper San Francisco Chronicle reports, Apple evaluates a cluster of properties around its brand-new Apple Park at just $200. Santa Clara County's tax assessor says the properties are worth $1 billion.

In California, businesses and individuals pay a property tax. It is calculated according to the value of the land and the buildings on it.

Aug 16 09:29

MoviePass parent company suffers $104million gross loss in second fiscal quarter after ticket discount app's recent changes to reduce costs resulted in subscriber backlash

Helios and Matheson Analytics Inc., the parent company of movie ticket discount service MoviePass, announced its second quarter fiscal results Tuesday.

According to the report, the company suffered a $104million gross loss and a drop of $132.47 per share.

CNN Money reported that MoviePass was trading at a meager 4 cents per share as of Wednesday morning.

The financial report comes weeks after the discount service imposed haphazard changes to reduce costs.

Aug 16 09:13

RBS bankers joked about destroying the US housing market

RBS bankers joked about destroying the US housing market after making millions by trading loans that staff described as “total fucking garbage”, according to transcripts released as part of a $4.9bn (£3.8bn) settlement with US prosecutors.

Details of internal conversations at the bank emerged just weeks before the 10-year anniversary of the financial crisis, which saw RBS rescued with a £45bn bailout from the UK government.

The US Department of Justice (DoJ) criticised RBS over its trade in residential mortgage backed securities (RMBS) – financial instruments underwritten by risky home loans that are cited as pivotal in the global banking crash.

It said the bank made “false and misleading representations” to investors in order to sell more of the RMBS, which are forecast to result in losses of $55bn to investors.

Aug 16 08:56

Freaked out by Elon Musk's exuberant tweets Tesla board is lawyering up

Three board members of electric carmaker Tesla are reportedly hiring attorneys to tackle potential impact from repeated claims issued by CEO Elon Musk on possible privatization of the struggling company.

Last week, the chief executive tweeted that he is considering taking Tesla private when the company’s shares hit $420. Shortly after that Tesla stock surged nearly 11 percent from $342 to $379 per share.

The step, which had been widely-covered by global media, was expected to evoke even more troubles for the electric vehicles manufacturer if it became clear that Musk intended to temporarily boost the company’s stock to force losses on short sellers. Such a measure could be considered stock manipulation, which is illegal.

Aug 16 08:55

Art of the Deal Russian-Style: Massive Win for Eurasian Integration as Moscow Resolves Status of Caspian Sea With Neighbors

The five states surrounding the sea – Russia, Azerbaijan, Iran, Turkmenistan and Kazakhstan – have reached difficult compromises on sovereign and exclusive rights as well as freedom of navigation

The long-awaited deal on the legal status of the Caspian Sea signed on Sunday in the Kazakh port of Aktau is a defining moment in the ongoing, massive drive towards Eurasia integration.

Aug 16 08:54

The Recession 2019

Aug 16 08:52

Amazon accused of allowing cheating customers to unfairly get refunds from online sellers

SaveMyLight.co.uk sells lighting components and claims that Amazon has a policy of refunding buyers “at the drop of a hat to keep them happy”.

The Midlands-based retailer says its customers have been refunded even when they don't return goods, or return goods that have clearly been damaged while in use, and some have even got refunds after returning goods that SaveMyLight does not sell.

“The chargeback procedure on Amazon is in chaos and being continually abused with more and more buyers exploiting this now openly known loophole - buy goods, file chargeback, get money back, keep goods,” says sales manager Steven Williams.

Aug 16 08:16

Bitcoin crash prompts suicide concerns

Aug 15 20:12

The Looming Economic Collapse: The $250 Trillion Dollar Worldwide Debt Crisis

As governments raise taxes to cope with their unending spending habits, people are increasingly being forced to supplement their own income with loans. And according to most financial experts, this debt problem is so big that it will usher in a global economic collapse of epic proportions.

Aug 15 16:31

NZ bans sale of homes to foreign buyers

A landmark bill banning overseas buyers from purchasing existing Kiwi homes has passed into law.

Associate Finance Minister David Parker said the bill's passage was a significant milestone, and would stop New Zealanders being outbid by wealthier foreign buyers.

Parker said it demonstrated the Government's commitment to making the dream of home ownership a reality for more Kiwis.

“We should not be tenants in our own land," he said.

Aug 15 14:55

Are Cryptocurrencies A Fictional Dream?

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